Nothing is more expensive than a missed opportunity.”~ H. Jackson Brown, Jr.
Sellers should know that pricing a home is one of the most important steps in completing a successful sale. Pricing a home properly leads to reduced negotiations, faster offers, and fewer headaches.
If your home is priced too high, you risk alienating buyers and losing any momentum for a quick home sale. I have seen many overpriced homes in Sanpete County. From my experience, they share these common signs.
Your Home Is Priced Too High When
The market always gives us an idea of how much a home will sell for. All you have to do is listen and keep listening. Here are some things to look out for:
- Few or no showings: In the first couple of weeks of your home being on the market, you should have a lot of people interested in showings. If you don’t, your home may be overpriced. It’s rare to sell a home to anyone if they don’t come to see it.
- Newly listed properties: If newer listed comparable homes are listed at a lower price than yours, you will likely have a hard time selling.
- No offers: If you haven’t received any offers, you might be pricing yourself out of the market. I would also consider lowering your home price if you receive too many low-ball offers. Are they really low-ball offers, or are you just overpriced?
- New construction: If there are comparable brand new homes in your home’s price range, you may need to lower your price to be competitive.
- You chose an agent that wants to list higher than all the others: A competitive market analysis (CMA) should be done before any Realtor prices a home. If you selected a Realtor that prices your home well above other agents, you need to know why. Realtors should be able to back up their pricing on your home.
- Your neighbors’ homes are selling: If you neighbors’ homes or other houses in the vicinity are selling, then you should re-evaluate the market and price accordingly.
- Your home doesn’t show well online: Over 80% of buyers start their home buying process online. You need an agent with the knowledge to make a captivating online posting. Be sure it includes professional photography and proper descriptions. Online, you must make a strong effort to communicate “why your property is worth its selling price” to stay competitive.
- Your listing contract expired: If you have been sitting on your house for months and have received little to no interest, then it is time to make a change. Chances are a new agent and a new price are in order.
As a Realtor, I know you want to sell your home for as much as the market will bear. Unfortunately, this price and the price you think your home is worth may be two different things.
Overpricing is a downfall with many unsold homes. It is much easier to come in at a proper valuation and sell quickly than to negotiate from a higher price down to the actual home value. Keep an eye on the signs above and make a change before it’s too late.
Do you have any thoughts or advice for home sellers about overpriced homes? I would love to hear them in the comments.